Had a stressful first tax season? Here’s how to make next year’s a breeze
If you’re a new business owner and had a tough time filing your company’s taxes this year, here are some ideas on how to make next year’s filing stress-free.
1. Get organised and stay organised
Did you find yourself in a mad scramble in the days leading up to your tax filing deadline? If so, think about establishing a system to keep your company’s financial data organised and complete. It’s useful to keep a designated file for tax matters, and ensure that all income and expenses‐related information is properly entered and categorised on an ongoing basis. When the time comes to file your taxes next year, all you’ll have to do is retrieve the relevant information when you need to file your tax return.
2. Check in regularly
Taking a proactive approach is a good way to reduce the chance of unpleasant surprises tax season next year. In other words, make it a point to maintain your tax records, and set a date at fixed intervals throughout the year to review them together with the relevant employees involved. This will help break your tax preparations into manageable chunks and give you a better understanding of your company’s financials at all times.
3. Use a checklist
Now that you’ve been through this year’s tax filing process, take note of all the documents and information that were required so you can gather them quickly when tax season next rolls around. With a checklist, you’ll know exactly what needs to go into your tax folder and you can prepare it as and when it becomes available. The Inland Revenue Authority of Singapore (IRAS) provides a handy checklist for both GST- and non-GST-registered businesses to use to compile all the documents necessary for tax filing.
4. Make records of your other income sources
If you, like many other small business owners, have other sources of income – whether from teaching yoga, or taking on freelance gigs, for example – be sure to keep detailed records of those, too. Free software like Gnucash and Buddi will not only help you track your expenses, but all your income sources too. Make a point to keep track of all your expenses related to your side jobs as well, so that when the time comes to file your taxes, you’ll have all the necessary information at your fingertips.
5. Automate your bookkeeping
It's a lot easier to keep track of your company's date if you automate the process. Implementing a digital solution can help you reduce your paperwork, and eliminate unnecessary time spent agonising over accounting and HR-related matters. Service providers like Financio allow you to access and manage your finances on the go. Financio accounting can improve the accuracy of your accounts and reducing duplicate work; while HR service providers such as Talenox will help you keep on top of payroll and leave applications, while complying with the latest labour regulations. Better records will take the pain out of next year's tax filing season.
Take the first step to make next year's tax season stress-free by automating your key business operations. Try out online accounting and payroll with DBS Start Digital solutions here – and next year’s tax season could be a breeze.
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